Ralton Portfolio Mandates Ralton Asset Management Limited (‘Ralton') - Ralton is a boutique investment manager majority owned by its investment and executive team. As a specialist manager, Ralton has been offering its investment capabilities exclusively through SMAs since 2001 and currently manages assets on behalf of a wide range of investors including charitable trusts, corporations, superannuation funds, family trusts and individuals.
PORTFOLIO MANDATES
Ralton Australian Shares - offering a concentrated portfolio of Australian shares with some tax effective income.
Ralton High Yield Australian Shares - offering tax efficiency, a growing cash dividend yield and long-term capital growth.
Ralton Smaller Companies -
Ralton Leaders - offering long-term capital growth and tax effective income from blue-chip Australian shares.
INVESTMENT PHILOSOPHY
Ralton is a Value-oriented manager with a disciplined and proven investment approach that has been developed over many years. The process is guided by the following fundamental beliefs:
- Markets are not perfectly efficient and the true value of a business is not always reflected in its share price;
- Undervalued companies can be identified through detailed and intensive research; and
- Capital preservation is critical to wealth creation.
Intensive bottom-up research is the cornerstone of Ralton's investment approach, supplemented by top-down economic and thematic views. Using a number of proprietary qualitative and quantitative analysis techniques, Ralton seeks to identify high quality businesses that are trading at a considerable discount to valuation.
The companies that Ralton typically invests in can demonstrate strong and reliable management, good profit and dividend growth expectations, reasonably predictable future profits and cash flows, and very clear business models.
Ralton offers four Australian equity strategies managed in accordance with its value-driven approach that are complementary and designed to satisfy a spectrum of asset allocation requirements.
Ralton Australian Shares
Investment objective
To provide investors with long-term capital growth and some tax effective income from a concentrated portfolio of Australian shares. The Portfolio aims to deliver a return superior to that of the market over periods of five years or longer while at the same time seeking to minimise the risk of investment capital loss.
Investment strategy
To invest in quality companies that are assessed as likely to provide investors with attractive long term returns, and at the time of purchase are listed, or are about to be listed, on the ASX.
Ralton employs a multi-stage investment strategy, the cornerstone of which is fundamental bottom-up research supplemented by top-down economic and thematic views.
Stage 1: Defining the Investment Universe (Screening)
The first stage of the process is to narrow the number of stocks in the investment universe by applying a number of screens. This approach systematically eliminates companies that do not meet certain minimum standards, allowing the Investment team to focus more intensely on companies of potential interest.
Stage 2: Bottom-up Fundamental Company Research
Ralton's research programme is focused on understanding the key drivers of business performance and returns, namely people, operations, products and services, and market dynamics. Ralton undertakes a detailed assessment of executive management, interviews competitors and suppliers, reviews financials, and forms a clear view on the outlook for the company's industry.
Stage 3: Portfolio Construction
Risk management and capital preservation are key themes underlying the portfolio construction framework. With a focus on actively managing down-side portfolio risk for investors, Ralton constructs an efficiently diversified portfolio of high quality, undervalued companies, and invests for the long term (typically 3 to 5 years) in an effort to maximise after-tax returns.
Designed for investors who
- Seek long term capital growth from a concentrated portfolio of shares, with some tax-effective income;
- Seek consistent above market returns; and
- Have a long-term investment horizon of at least five years and accept the risk of significant price fluctuations.
Benchmark S&P/ ASX 300 Accumulation Index
Authorised investments
- ASX listed companies that are either 1) included in the S&P/ASX 300 Index, or 2) are amongst the largest 300 companies by market capitalisation.
- Hybrid debt, convertible securities and other types of securities are allowable if listed on the ASX and issued by a qualifying company.
- Excluded investments include: derivatives, unlisted securities and foreign listed securities.
Ralton High Yield Australian Shares portfolio mandate
Investment objective
To provide investors with a consistent, tax-efficient and growing cash dividend yield, and long-term capital growth. The Portfolio aims to deliver a return superior to that of the market over periods of five years or longer and an above market yield.
Investment strategy
To invest in quality ASX listed companies that are assessed as likely to provide investors with attractive long-term returns (capital growth plus above average yield and franking), and at the time of purchase are either included in the S&P/ASX 300 Index or are one of Australia's largest 300 companies based on market capitalisation.
Ralton employs a multi-stage investment strategy, the cornerstone of which is fundamental bottom-up research supplemented by top-down economic and thematic views.
Stage 1: Defining the Investment Universe (Screening)
The first stage of the process is to narrow the number of stocks in the investment universe by applying a number of screens. This approach systematically eliminates companies that do not meet certain minimum standards, allowing the Investment team to focus more intensely on companies of potential interest.
Stage 2: Bottom-up Fundamental Company Research
Ralton's research programme is focused on understanding the key drivers of business performance and returns, namely people, operations, products and services, and market dynamics. Ralton undertakes a detailed assessment of executive management, interviews competitors and suppliers, reviews financials, and forms a clear view on the outlook for the company's industry.
Stage 3: Portfolio Construction
Risk management and capital preservation are key themes underlying the portfolio construction framework. With a focus on actively managing down-side portfolio risk for investors, Ralton constructs an efficiently diversified portfolio of high quality, undervalued companies, and invests for the long term (typically 3 to 5 years) in an effort to maximise after-tax returns.
Designed for investors who
- Seek a consistent, above average and tax-efficient cash dividend yield;
- Seek long term capital growth from a concentrated portfolio of Australian shares; and
- Have a long term investment horizon of at least five years and accept the risk of significant price fluctuations.
Minimum investment horizon - 5 years or longer
Benchmark S&P/ ASX 300 Accumulation Index
Authorised investments
- ASX listed companies that are either 1) included in the S&P/ASX 300 Index, or 2) are amongst the largest 300 companies by market capitalisation.
- Hybrid debt, convertible securities and other types of securities are allowable if listed on the ASX and issued by a qualifying company.
- Excluded investments: derivatives, unlisted securities and foreign listed securities.
Ralton Smaller Companies
Investment objective
To provide investors with long-term capital growth and some tax effective income from a concentrated portfolio of smaller capitalisation Australian shares. The Portfolio aims to deliver a return superior to that of the market over periods of five years or longer while at the same time seeking to minimise the risk of investment capital loss.
Investment strategy
To invest in quality smaller capitalisation companies that are assessed as likely to provide investors with attractive long term returns, and at the time of purchase are listed, or about to be listed, on the ASX and not included in the S&P/ASX 50 Index.
Ralton employs a multi-stage investment strategy, the cornerstone of which is fundamental bottom-up research supplemented by top-down economic and thematic views.
Stage 1: Defining the Investment Universe (Screening)
The first stage of the process is to narrow the number of stocks in the investment universe by applying a number of screens. This approach systematically eliminates companies that do not meet certain minimum standards, allowing the Investment team to focus more intensely on companies of potential interest.
Stage 2: Bottom-up Fundamental Company Research
Ralton's research programme is focused on understanding the key drivers of business performance and returns, namely people, operations, products and services, and market dynamics. Ralton undertakes a detailed assessment of executive management, interviews competitors and suppliers, reviews financials, and forms a clear view on the outlook for the company's industry.
Stage 3: Portfolio Construction
Risk management and capital preservation are key themes underlying the portfolio construction framework. With a focus on actively managing down-side portfolio risk for investors, Ralton constructs an efficiently diversified portfolio of high quality, undervalued companies, and invests for the long term (typically 3 to 5 years) in an effort to maximise after-tax returns.
Designed for investors who
- Seek long term capital growth from a concentrated portfolio of smaller companies, with some tax-effective income;
- Seek consistent above market returns; and
- Have a long-term investment horizon of at least five years and accept the risk of significant price fluctuations.
Minimum investment horizon - at least 5 years
Benchmark S&P/ ASX Small Ordinaries Accumulation Index
Ralton Leaders
Investment objective
To provide investors with long-term capital growth and tax effective income from a portfolio of blue-chip Australian shares. The portfolio aims to deliver returns that are consistently above the S&P/ASX 100 Accumulation Index over a three to five year period.
Investment strategy
To invest in quality larger capitalisation companies that are assessed as likely to provide investors with attractive long term returns relative to the Index, and at the time of purchase are either included in the S&P/ASX 100 Index or are one of Australia's largest 100 companies based on market capitalisation.
Ralton employs a multi-stage investment strategy, the cornerstone of which is fundamental bottom-up research supplemented by top-down economic and thematic views.
Stage 1: Defining the Investment Universe (Screening)
The first stage of the process is to narrow the number of stocks in the investment universe by applying a number of screens. This approach systematically eliminates companies that do not meet certain minimum standards, allowing the Investment team to focus more intensely on companies of potential interest.
Stage 2: Bottom-up Fundamental Company Research
Ralton's research programme is focused on understanding the key drivers of business performance and returns, namely people, operations, products and services, and market dynamics. Ralton undertakes a detailed assessment of executive management, interviews competitors and suppliers, reviews financials, and forms a clear view on the outlook for the company's industry.
Stage 3: Portfolio Construction
Risk management and capital preservation are key themes underlying the portfolio construction framework. With a focus on actively managing down-side portfolio risk for investors, Ralton constructs an efficiently diversified portfolio of high quality, undervalued companies, and invests for the long term (typically 3 to 5 years) in an effort to maximise after-tax returns.
Designed for investors who
- Seek long term capital growth and tax effective income from a portfolio of larger and more liquid shares;
- Seek consistent above market returns; and
- Have a long term investment horizon of at least three to five years and accept the risk of significant price fluctuations.
Benchmark S&P/ ASX 100 Accumulation Index
To learn more, read OneVue Managed Account Part B.
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